Here is a result of a regression of excess GE stock return on excess market (S&P500) index return, , from Excel. Using this result, answer the following questions.

1. The market risk exposure of this stock is .

2. The characteristic line for this stock is = + X

3. The stock is % riskier than the market.

4. As per CAPM, the expected market return given an expected return on a security of 11.35 % and a risk-free interest rate of 5% would be %. (Note: Round to the nearest hundredth.)

The answer please fast

Question

Here is a result of a regression of excess GE stock return on excess market (S&P500) index return, , from Excel. Using this result, answer the following questions.

1. The market risk exposure of this stock is .

2. The characteristic line for this stock is = + X

3. The stock is % riskier than the market.

4. As per CAPM, the expected market return given an expected return on a security of 11.35 % and a risk-free interest rate of 5% would be %. (Note: Round to the nearest hundredth.)

The answer please fast

Accepted Answer

The Answer is in the image, click to view ...

Question

Here is a result of a regression of excess GE stock return on excess market (S&P500) index return, , from Excel. Using this result, answer

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question